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Firms operating under conditions of monopoly set their equilibrium price where marginal cost (MC) equals marginal revenue (MR). This price is typically higher than the marginal cost, allowing the monopolist to maximize profits by restricting output. Unlike firms in competitive markets, a monopolist has the market power to influence the price, leading to higher prices and lower quantities of goods sold compared to competitive equilibrium.
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What is shared monopoly?
Shared or Joint monopoly refers to anticompetitive behaviour by firms, normally an oligopoly, in order to secure monopoly profits for the firms as a group. Essentially, shared monopoly requires some form of collusion but stops short of being a formal cartel. It is therefore similar to tacit collusion. In a shared monopoly firms may not compete for the same customers and have instead local monopolies.
What is the number of firms in a monopoly?
Mono means one So monopoly means one business controls all of a market.
What is a market structure in which a few large firms dominate a market?
a monopoly
Firms in which market structure hold the most market power?
Monopoly
What are two common barriers that prevent firms from entering a market?
Monopoly and Oligopoly are two barriers that prevent firms from entering the marketplace.
Conditions that prevent the entry of new firms in a monopoly market are?
Barriers to entry.
What is shared monopoly?
Shared or Joint monopoly refers to anticompetitive behaviour by firms, normally an oligopoly, in order to secure monopoly profits for the firms as a group. Essentially, shared monopoly requires some form of collusion but stops short of being a formal cartel. It is therefore similar to tacit collusion. In a shared monopoly firms may not compete for the same customers and have instead local monopolies.
What is the number of firms in a monopoly?
Mono means one So monopoly means one business controls all of a market.
Firms in Which market structure holds the most market power?
Monopoly
What is a market structure in which a few large firms dominate a market?
a monopoly
Firms in which market structure hold the most market power?
Monopoly
When barriers prevent firms from entering a market that has a single supplier?
monopoly
What are two common barriers that prevent firms from entering a market?
Monopoly and Oligopoly are two barriers that prevent firms from entering the marketplace.
If a firms fixed financial costs decrease the firms operating breakeven point will do what?
decrease <--------WRONG!!!!! The operating breakeven point will remain unchanged.
What is horizontal and covers similar types of firms and operating practices of the firms?
industry analysis
What is the one main difference between a monopoly and an oligopoly?
Firms in oligopoly can set prices to a degree but must consider other firms' decisions.
What illegal economic function causes business firms to combine to prevent competition?
A cartel or monopoly causes business firms to combine to prevent competition.
